Litigation exposure under the 2013 Dodd-Frank mortgage servicing regulations (Part 3)

The Mortgage Rules rewrite much of Regulations X and Z, and will fundamentally change the mortgage origination and servicing industry

In this series, we are outlining the impact for litigation exposure that the new mortgage servicing regulations have on servicers (Part 1 and Part 2).

Today, we evaluate one more area of specific challenges: those related to requests for payoff statements, and then we will wrap-up by taking a look at the interface of new loss mitigation and mortgage servicing regulations with the foreclosure process.

Early intervention requirements

This section imposes two early intervention requirements for delinquent borrowers. First, a servicer has 35 days to make good faith efforts to establish live contact — a telephone or in-person meeting, but not a voicemail — with the delinquent borrower and inform him/her about the availability of loss mitigation options.

Contributing Author

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David A. Elliott

David A. Elliott is an attorney in Burr & Forman LLP’s Financial Services Litigation Practice Group, which serves as national and regional litigation counsel for...

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Contributing Author

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Nicholas S. Agnello

Nicholas S. Agnello is an attorney in Burr & Forman LLP’s Financial Services Litigation Practice Group, which serves as national and regional litigation counsel for...

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Contributing Author

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Seth I. Muse

Seth I. Muse is an attorney in Burr & Forman LLP’s Financial Services Litigation Practice Group, which serves as national and regional litigation counsel for...

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